The boss of one of our largest retail companies says its latest results are "unacceptable"

The Warehouse Group -- owner of The Warehouse, Noel Leeming and Warehouse Stationery -- is expecting its half-year profit to drop by a third.

It expects second-half earnings, to be broadly in line with last year's loss of about 14-million dollars.

Interim Chief Executive John Journee says they're near the bottom of the spending cycle, and sales are showing signs of a turn-around.

But he says the economic recovery remains sluggish and customer demand low, pushing down profits.